What to expect in the Budget

Tax thresholds freeze

The ultimate stealth tax could rake in billions as a four-year freeze on income tax thresholds is extended to six years. The basic rate threshold will stay at £1 ,571 until 0 7, while the starting point for 40p tax will be held at £50, 71.

Council tax hike

The decade-long cap on council tax increases is expected to be lifted to 5 per cent, putting £100 on an average Band D bill.

Pensions and benefits

The Chancellor is expected to raise pensions and benefits in line with the September inflation figure of 10.1 per cent, which will see the new state pension rise by £18.70 to £ 03.85 a week.

Energy bills

Liz Truss’s energy price ‘guarantee’ to cap average bills at £ ,500 for two years will now be raised to around £3,000 from next April. A universal one-off payment of £400 this winter will not be repeated, meaning millions will be an average of £900 worse off.

45p tax

The PM vetoed plans to restore Labour’s 50p top tax rate. But he has accepted proposals to lower the starting threshold from £150,000 to £1 5,000, which could drag around 50,000 high earners into the top rate for the first time.

Social care

The Chancellor is expected to delay the flagship cap on social care costs by two years, with officials predicting it will save £1 billion next year.

Spending

Mr Hunt is expected to announce public spending cuts totalling around £33 billion. Some capital projects face curbs, such as prison building.

Saving and investment

The £1 ,300 tax-free allowance for capital gains tax is set to be halved to around £6,000. The annual £ 0,000 limit for ISA savings will be frozen.

Windfall tax

The 5 per cent levy introduced on oil and gas profits this year could be increased to 35 per cent and is likely to be extended until 0 8.

Motoring

Electric vehicles are set to be charged vehicle excise duty for the first time.